In today’s issue of Investing Daily Dose (IDD):
💵Time Is Your Competitive Advantage💵
Editor’s Note: One-day options trading is exploding in popularity, so we thought it was timely to run a previous “Dose” about the biggest wealth-building advantage individual investors have at their disposal.
In his must-read book Same as Ever (Disclosure: As an Amazon Affiliate, we may earn commissions from qualifying purchases on Amazon’s website), author Morgan Housel says that research shows that for holding a stock, the “most convenient” time horizon is “probably around 10 years or more.”
Take that approach and time becomes a competitive advantage.
It revs up the compounding engine.
And it mitigates the fallouts from mistakes – which are inevitable … we all make them.
In the chapter he calls “Too Much, Too Soon, Too Fast,” Housel demonstrates how stocks pay off big when you put time on your side but inflict pain when you’re in a hurry.
“A good summary of investing history is that stocks pay a fortune in the long run but seek punitive damages when you demand to be paid sooner.”
Bill’s Investing Takeaway
“Time is a competitive advantage for individual investors.
That longer horizon runs counter to the casino mindset I’ve watched take hold the last few years.
That longer holding period is how you can outfox Wall Street …
It’s how you can cement your own future … and create generational wealth for your family.
It’s the one strategy that puts you in a position to win.”